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Posted: 2022-11-26 13:41:09

Victorian Opposition Leader Matthew Guy has conceded defeat in a state election result which has left the Liberal Party picking up the pieces after another crushing loss.

Labor has won a third-straight term and the ABC has projected it will retain a comfortable majority in the lower house.

"A short time ago I did ring Premier Daniel Andrews and offered congratulations," Mr Guy said about 10:45pm.

He said it had been a "disappointing night", but predicted his party would finish with more seats in the lower and upper house than projected earlier in the night.

"On behalf of all Victorians I think it's important now that post-election we come together as Victorians," he told Liberal Party faithful.

It is the second time Mr Guy has conceded defeat in a Victorian election, having led the party for its thumping 2018 loss.

He was replaced after that vote by Michael O'Brien, then returned to the job in September last year.

Victorian Opposition Leader Matthew Guy speaks to party faithful at the Liberal Party reception in Melbourne.
Matthew Guy thanked his party and candidates.(AAP: Joel Carrett)

Mr Guy did not discuss his future at the party, instead using his concession speech to say he was "immensely proud" of his party and the candidates.

He pointed to swings towards his party in traditional Labor heartland electorates, which saw the government's margins in formerly safe seats narrowed, and Nationals' victories in the regions.

The result for the Liberals was worse than many had predicted, with some predicting a minority Labor government.

After a short speech in which he thanked party officials and his family, Mr Guy said the party had "a lot of work to do".

"We know that, but we also know that our time in the sun will come again," he said.

'Soul-searching' needed within Liberal Party

Speaking earlier in the evening, former Liberal Premier Ted Baillieu said it had been a "disappointing" result for his party.

He told ABC Radio Melbourne the party had to "appeal to the centre ground".

"And you've got to win that. And there are all sorts of boxes you got to tick in doing that. And I think we've probably missed some of those opportunities," he said.

He said while the party had cut through on the issue of the Suburban Rail Loop, it had not reached the electorate on other areas.

He said "some of the candidates were a significant hiccup" for the party.

Mr Guy was forced to distance the Liberals from top upper-house candidate Renee Heath over her links to an ultra-conservative church, saying she would not sit with the party when she was elected. Another candidate had to apologise over offensive comments about Indigenous people.

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